A boat parked at public works has sparked some questions.
WAYZATA — A resident’s inquiry into a large boat parked at the City of Wayzata’s Public Works facility has sparked questions about the line between public oversight and small-town courtesy.
Greg Flannigan noticed a 40-foot vessel in the city’s “boneyard,” an area behind Public Works used to store boulders, fencing, and surplus materials.
Flannigan said he first wanted to determine the facts, noting that when city-owned facilities are used for personal purposes, it can raise questions about whether policies are being followed and whether taxpayer-supported assets are being properly safeguarded. “City residents pay for all these things,” Flannigan said in a text message.
In an email to Interim City Manager Mike Kelly, Flannigan pressed city staff for clarification on ownership of the boat, whether the city was collecting fees for its storage, and if insurance coverage applied.
Mayor Andrew Mullin responded, confirming the boat does not belong to the city and that the situation is an exception.
“I can confirm that a temporary exception has been granted for a contractor to store a boat on-site at the City of Wayzata Public Works facility. This arrangement was made to help the individual with a logistical challenge related to transporting the vessel to its winter storage,” Mullin said.
He emphasized that the accommodation is limited:
“This is a temporary measure. As a general rule, City employees, contractors and elected officials are not allowed to store personal property on City grounds. As a small town, we do our best to assist our residents, businesses, City employees, and contractors when possible.”
City officials noted that the boat belongs to a contractor who has served Wayzata for more than 40 years. The vessel was temporarily placed at the site after his truck broke down, preventing its transport to winter storage. It is expected to remain only until repairs are complete.
The incident highlights the balance between public accountability and Wayzata’s tradition of neighborly assistance — a reminder that even in a lakeside town, questions about how city property is used can surface in unexpected ways.
WAYZATA — Mike Kelly has agreed to a verbal offer from the City of Wayzata to serve as interim City Manager, according to Mayor Andrew Mullin. The City Council will meet in a special open session on Tuesday, July 8 at 5:30 p.m. to formalize the agreement by resolution.
While the vote is considered a formality, it is a necessary step to ratify the appointment. If approved as expected, Kelly is anticipated to begin his duties as interim City Manager once outgoing City Manager Jeff Dahl officially departs for his new position in Woodbury.
Kelly’s interim appointment comes during a period of transition at City Hall. In addition to Dahl’s departure, Deputy City Manager Aurora Yager is currently out on maternity leave, underscoring the need for experienced interim leadership.
The special meeting will be held at Wayzata City Hall and is open to the public.
Stay with Wayzata.com for updates on this developing story.
Wayzata is entering a carefully managed leadership transition as City Manager Jeff Dahl prepares to step down this summer. Deputy City Manager Aurora Yager is on maternity leave through early fall, and Public Works Director Mike Kelly has been offered the interim title to guide city operations in the meantime.
Mayor Andrew Mullin confirmed the offer on Wednesday. “The offer was made last night verbally and will go to an email this morning,” he told Wayzata.com. “We will know by end of day Thursday. So a formal offer’s been made. He’s noodling it, and we continue to interview outside candidates as an alternative.”
Mike Kelly: A Steady Hand in Public Works
Kelly has served as Wayzata’s Director of Public Works since 2015 and has worked for the city since 2003. A licensed professional engineer with a civil engineering degree from the University of Minnesota, Kelly has managed street improvement projects, utility systems, water and sewer infrastructure, snow removal operations, and capital project planning.
His two decades in municipal engineering and city operations make him a trusted internal candidate to maintain continuity during the transition.
Aurora Yager: Thoughtful Leadership and Proven Experience
Deputy City Manager Aurora Yager began her maternity leave on June 30 and is expected to return in October to resume her current role. She is also expected to take on the interim City Manager title at that time, depending on how the City’s executive search progresses.
Deputy City Manager Aurora Yager
Yager, who has been with the City of Wayzata since 2018, brings a comprehensive background in city management, strategic planning, and civic engagement. Prior to her current role, she served Assistant City Administrator for the City of Howard Lake and has experience in finance, communications, HR, and community development. She holds a Master of Public Administration from the University of Kansas and a Bachelor Degree in Social Work also from the University of Kansas.
“I’ve shared with the Council that I am interested in the role but that I can’t commit to a yes or no answer until I come back from maternity leave,” Yager told Wayzata.com. “I want to be sure that I’m carefully balancing my new personal responsibilities… I’d rather take my time and be thoughtful about it.”
A Deliberate Transition
With Yager expected to return in the fall and Kelly now considering a short-term interim role, Wayzata’s transition plan is unfolding with a blend of stability and long-range thinking. The City Council continues to consider both internal and external candidates for the permanent City Manager role.
In the coming weeks, decisions made behind the scenes at City Hall will shape Wayzata’s leadership well into the next chapter—balancing institutional knowledge, professional expertise, and thoughtful timing.
Mayor Johanna Mouton, Jude Hale APWA, Eric Lembke APWA and Wayzata Public Works Director Mike Kelly. Submitted photo.
At the December 17th Wayzata City Council meeting, the city celebrated a momentous achievement as the Panoway on Wayzata Bay project was officially recognized with the 2024 Minnesota Project of the Year Award by the American Public Works Association Minnesota Chapter (APWA-MN). Representatives from the APWA presented the award to the City, emphasizing the project’s transformative impact and excellence in public works innovation.
Public Works Director and City Engineer Mike Kelly introduced the presentation, highlighting the collaborative effort that made the project possible. “In October, the city submitted an application for the Public Works Project of the Year award, and we were fortunate enough to be selected,” Kelly remarked. “This project, including the lake walk, docks, and other improvements…” has truly reconnected our community to Lake Minnetonka.
Eric Lembke, Chair of the APWA-MN Awards Committee, and Jude Hale, President of the APWA’s Minnesota chapter, led the presentation. Hale expressed the organization’s appreciation for the opportunity to recognize Wayzata’s accomplishments. Hale stated the award showcases the vision, collaboration, and dedication involved in the Panoway project. It is a model for public works excellence across the state.
Hale elaborated on the rigorous criteria used to evaluate the submissions, including innovation in construction management, safety performance, community engagement, environmental sustainability, and the project’s overall value to the public works profession. “This project in and of itself, I can clearly, standard confidently tell you that this one checked all those boxes,” Hale noted.
The Panoway project’s vision centered on reconnecting Wayzata with its lakefront, overcoming significant challenges such as the presence of a 150-year-old railroad corridor. The first phase transformed Lake Street with a pedestrian-friendly design, including a lakeside plaza and enhanced access to the Dakota Regional Trail. Lembke shared his personal appreciation for the improvements, stating, “…the improvements make that such a more pleasurable experience for us to come from our community to yours, enjoy the restaurants and shops after we get done with our biking trips…”
The project’s second phase further solidified its impact by focusing on the lakefront boardwalk and community docks. The design emphasized environmental sustainability and innovative construction techniques, which were pivotal in navigating the unique challenges posed by the site’s proximity to the railroad.
The Panoway project was made possible through significant funding partnerships, including millions in private contributions. Lembke highlighted the city’s remarkable public outreach efforts, which ensured collaboration with residents, businesses, and regulatory agencies throughout the project’s development.
The APWA-MN Project of the Year Award recognizes excellence in public works projects across Minnesota. Panoway’s recognition in the Structures category underscores its innovative approach and lasting impact on the Wayzata community. As the award was handed over to Kelly, he humbly accepted on behalf of the team, saying, “On behalf of the entire team that did this, thank you very much.”
MayorJohanna Mouton stated, “I wanted to thank you Mike. You have been an integral part of not only the city, but as director of public works and our head engineer instrumental in getting this project along with so many other staff members but well deserved and thank you for seeing this very one getting us our first award I know we’ll have many more to come.”
The Panoway project has not only redefined Wayzata’s relationship with Lake Minnetonka but also serves as an inspiring example for other communities aiming to enhance their public spaces.
The maximum property tax levy increase for 2023 could be more than residents are accustomed to.
The city council was presented the preliminary property tax levy during Tuesday’s meeting. Administrative services director Aurora Yager broke down the need for the increase, along with the preliminary general fund and enterprise fund budgets.
City staff starts the budgeting process during the summer months, preparing for a final budget at the end of the year.
City of Wayzata levy amounts from 2018-2023.
The recommended preliminary property tax levy increase for next year is 10.59-percent. The levy must be approved by the council and certified to Hennepin County by Friday, Sept. 30.
“In my six years on the council and two years in this role — this is the largest increase I have seen, It’s not a number we have ever entertained.”
MAYOR JOHANNA MOUTON
The largest factor in the increase, according to Yager, is to pay for additional staffing. Public safety in particular will see an increased investment with the addition of two more police officers.
“Just paying for employees is about 60-percent of our budget. That’s what it takes to provide services.”
AURORA YAGER
The city is working toward having two officers on duty at all times. With the number of officers currently with the police department this is not possible. Yager said it would really take three more officers to achieve that goal.
Currently, the police department is a more than $2.6 million expenditure for the city. The proposed budget increase would add another $46,812 to the department.
“I applaud how well the city has been run financially for as long as I’ve known. This has been a painful year to look at these things,” said councilor Alex Plechash. “It’s my view we do need what we’re asking for. I feel it’s one that’s warranted.”
Plechash said the largest complain he hears from residents is about evening activity on Lake Street.
“For the most part people love Panoway. It’s added vibrancy to the community,” he said. “With that comes the negative that we have some things we need to take care of.”
ALEX PLECHASH
Following Plechash’s comments, councilor Cathy Iverson asked what the true cost of maintaining Panoway is. Public works director and city engineer Mike Kelly said the city has only just started tracking that data.
The property tax increase, if at the maximum rate proposed, would cost the median homeowner an additional $110.
While the increase took some of the council aback, Yager shared how it compares to neighboring cities. Even with an increase of more than 10-percent, Wayzata would have the second lowest tax levy rate among those cities. The city’s property tax rate makes up about 18-percent of a property owner’s property tax statement.
Councilors Iverson and Molly MacDonald voiced their hesitation to certify the rate increase. MacDonald said she believes it can be lowered. When the time came for roll call, Iverson was the only one to vote against certifying.
“A double digit increase is significantly high in my opinion,” she said. “I’m not very comfortable at this moment.”
CATHY IVERSON
Yager said she has heard of possibly larger rate increases from neighboring cities ranging from 5- to 22-percent.
“We’ll see what happens when those other communities release their levies,” she said. “I would not be surprised to see higher.”
With the preliminary property tax levy certified at an increase of 10.95-percent, the council can only increase the tax by that amount or less. It cannot increase by more than the rate it certified to the county.
The 2023 general fund assumes an increase of 5.37-percent in operating expenses. Cities across the country are losing one revenue source with the expiration of American Rescue Plan funds.
The total revenues for the city in 2022 are estimated at $7.5 million and projected to increase to about $7.9 million in 2023.
Yager said the proposal for the general fund is for a balanced budget. The council approved the preliminary budget. Iverson voted ‘nay.’
Text Amendment costs debated in fee schedule
When discussing the next agenda item, the adoption of the 2023 fee schedule, Iverson asked about zoning amendment fees. The fee schedule for 2023 has a text amendment fee of $2,195 with an escrow of $3,822. Both are increases of more than $100 over 2022.
“There has been someone that has reached out to the city asking why it’s so much higher than our other cities,” Iverson said. “Plymouth’s is $300 with no escrow. Excelsior is $700 with no escrow. Why such a high cost? It seems extremely elevated.”
CATHY IVERSON
Yager said she would not dispute those numbers, but she said cities such as Minnetonka have fees which are similar to Wayzata’s.
City attorney David Schelzel clarified what escrow is used for. He said it helps the city ensure legal processing fees and professional service fees are covered by the applicant. What is not used is then refunded to the applicant. On larger projects, staff may request a larger escrow.
Schelzel went on to say the escrow fee is important to the city because of the amount of “sophisticated development” that happens in Wayzata.
“Your single-family homeowner who is doing a small project, those fees are not going to be all used like that,” Schelzel said.
“For these big development applications when we have a PUD and we’re talking tens of millions of dollars, I’m not too concerned if they can make $3,800 work,” Mouton said. “I think they can scrape that together.”
Osgood also addressed concerns about zebra mussels, spiny water fleas, hydrilla, Brazilian elodea, rusty crayfish, and viral hemorrhagic septicemia. Seeking funding from the City of Wayzata for prevention, education, and managing aquatic invasive species, Osgood proposed potential user fees for Lake Minnetonka access, a suggestion likely to spark controversy.
Amendments of Various TIF Districts and Termination of TIF District: Jeanie Vanda presented amendments to Tax Increment Financing Districts, including #2 Central Redevelopment Authority, #3 Widsten, #4 West Lake. District #2, with projected funds of $5.5 million by 2013, allows flexibility in fund usage. The council authorized TIF district pooling of 25% of funds and approved the termination of TIF district #4 with a $235,000 escrow.
Council Continued a Variance for Two Curb Cuts on a Half-Circle Driveway: The council considered a variance for two curb cuts on a half-circle driveway at 195 Lakeview Lane. Despite the absence of a hardship for the property owner, the council expressed a desire to allow the half-circle driveway. Concerns about setting a precedent without demonstrating a hardship led to the recommendation for applicants to amend the variance to a conditional use permit.
Skate Park: City engineer Mike Kelly presented three options for the Skate Park at Wayzata West, but the council deferred approval due to budgetary concerns. The preferred option, costing $180,000, exceeded the $150,000 budget. The council decided to revisit the Skate Park discussion during the capital improvement budget deliberations to prioritize city projects.
Wayfinding Signs Update: Phase I of Wayfinding Signs, featuring blade signs identifying cultural and civic areas, was approved by the City Council. The $57,000 project will include signs hung on existing light poles. The council also approved Contract Documentation for New Signs.
An open house on October 14th will address connecting the Dakota Rail Trail and Luce Line Trail on Ferndale, with wayfinding signs likely marking the connecting path.
Municipal Licenses: The City Council unanimously approved all municipal licenses before it, concluding the meeting.
You must be logged in to post a comment.